Timex wants full settlement of Rs. 75 m from Vidullanka for Ugandan mini-hydro acquisition

• Mini-hydro specialist enhances private placement accordingly

Vidullanka Plc has decided to pay Timex Garments Ltd. the full consideration of Rs. 75 million via the issuance of shares through a private placement for the acquisition of the latter’s 6.5 MW mini-hydro project in Uganda.

Previously the agreement was to pay Rs. 50 million as a part-settlement of the purchase.

Accordingly, Vidullanka Plc will issue 15.16 million shares (as opposed to 9.12 million shares previously) at the present three-month volume weighted market price of the share with a maximum of 16 million shares to constitute the value of Rs. 75 million. 

The present three-month volume weighted average market price is Rs. 4.97. The current stated capital of the company is Rs. 1.34 billion (previously Rs. 1.26 billion and increased as a result of the capitalisation of reserves in November 2017), and the issue will result in a 5.3% (originally 3.9%) increase in stated capital and a maximum of 1.90% (originally 1.34%) increase in the number of shares in issue. 

The entity to be acquired is Timex Bukinda Hydro (Uganda) Ltd., which has secured all necessary studies and obtained all approvals except for the signing of the Standard Power Purchasing Agreement for the development of the 6.5 MW Bukinda Small Hydro Power Plant in Uganda.

The private placement is subject to the approval of the SEC and CSE and shareholder approval. The deal has been approved by the Exchange Control Department of the Central Bank and the Electricity Regulatory Authority of Uganda.